AINS 101 EXAM AND STUDY GUIDE LATEST 2025 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS WITH
RATIONALES(VERIFIED ANSWERS)|ALREADY GRADED A+
A liability loss has the following damages:
Medical expenses:
$
10,000
Damages for disfigurement:
$
50,000
Damages for pain and suffering:
$
100,000
What is the amount of special damages?
Select one:
A. $ 10,000
B. $ 50,000
C. $100,000
D. $160,000 - ANSWER-A. $ 10,000
.A stock insurer differs from a reciprocal insurance exchange in which one of the
,following ways?
Select one:
A. Stockholders own a stock insurer. Members own a reciprocal insurance exchange.
B. Both are owned by stockholders. However, the reciprocal insurance exchange
provides coverage to investors.
C. Both are formed to provide profit to investors. However, the stock insurer is
managed through a board of directors.
D. A stock insurer provides insurance to its policyholder-owners. A reciprocal
insurance exchange provides insurance to investors. - ANSWER-A. Stockholders own
a stock insurer. Members own a reciprocal insurance exchange.
.All of the following are sources of underwriting information to evaluate an insurance
submission, EXCEPT:
Select one:
A. Underwriting authority reports
B. Applications
C. Telematics
D. Inspection reports - ANSWER-A. Underwriting authority reports
.Allian Insurance Company is a growing regional insurer selling policies in three
states, specializing in personal auto and homeowners policies. Which one of the
following is most likely true regarding Allian and the policies it sells?
Select one:
A. The manuscript forms that Allian issues are developed by ISO.
B. Allian offers modular policies for coverages common to a large number of its
insureds.
, C. Customized coverages are usually issued through a self-contained policy.
D. Allian issues more preprinted policies than manuscript forms. - ANSWER-D. Allian
issues more preprinted policies than manuscript forms.
.At Greenfield Insurance Company, Bernadette and Rachel are corporate
underwriters, and Tomas and Jose are field underwriters. All of the following are
underwriting activities typically performed by corporate (or staff) underwriters like
Bernadette and Rachel, EXCEPT:
Select one:
A. Conduct underwriting audits
B. Formulate underwriting policy
C. Research the market
D. Support producers and insureds - ANSWER-D. Support producers and insureds
.Because insurance contracts impose an obligation for ethical practices and behaviors
on the parties while dealing with one another, an insurance contract is called a
Select one:
A. Contract of indemnity.
B. Conditional contract.
C. Contract of utmost good faith.
D. Contract of adhesion. - ANSWER-C. Contract of utmost good faith.
.Because the insurance company usually determines policy wording and the insured
has little choice but to "take it or leave it," an insurance contract is a
Select one:
QUESTIONS AND CORRECT DETAILED ANSWERS WITH
RATIONALES(VERIFIED ANSWERS)|ALREADY GRADED A+
A liability loss has the following damages:
Medical expenses:
$
10,000
Damages for disfigurement:
$
50,000
Damages for pain and suffering:
$
100,000
What is the amount of special damages?
Select one:
A. $ 10,000
B. $ 50,000
C. $100,000
D. $160,000 - ANSWER-A. $ 10,000
.A stock insurer differs from a reciprocal insurance exchange in which one of the
,following ways?
Select one:
A. Stockholders own a stock insurer. Members own a reciprocal insurance exchange.
B. Both are owned by stockholders. However, the reciprocal insurance exchange
provides coverage to investors.
C. Both are formed to provide profit to investors. However, the stock insurer is
managed through a board of directors.
D. A stock insurer provides insurance to its policyholder-owners. A reciprocal
insurance exchange provides insurance to investors. - ANSWER-A. Stockholders own
a stock insurer. Members own a reciprocal insurance exchange.
.All of the following are sources of underwriting information to evaluate an insurance
submission, EXCEPT:
Select one:
A. Underwriting authority reports
B. Applications
C. Telematics
D. Inspection reports - ANSWER-A. Underwriting authority reports
.Allian Insurance Company is a growing regional insurer selling policies in three
states, specializing in personal auto and homeowners policies. Which one of the
following is most likely true regarding Allian and the policies it sells?
Select one:
A. The manuscript forms that Allian issues are developed by ISO.
B. Allian offers modular policies for coverages common to a large number of its
insureds.
, C. Customized coverages are usually issued through a self-contained policy.
D. Allian issues more preprinted policies than manuscript forms. - ANSWER-D. Allian
issues more preprinted policies than manuscript forms.
.At Greenfield Insurance Company, Bernadette and Rachel are corporate
underwriters, and Tomas and Jose are field underwriters. All of the following are
underwriting activities typically performed by corporate (or staff) underwriters like
Bernadette and Rachel, EXCEPT:
Select one:
A. Conduct underwriting audits
B. Formulate underwriting policy
C. Research the market
D. Support producers and insureds - ANSWER-D. Support producers and insureds
.Because insurance contracts impose an obligation for ethical practices and behaviors
on the parties while dealing with one another, an insurance contract is called a
Select one:
A. Contract of indemnity.
B. Conditional contract.
C. Contract of utmost good faith.
D. Contract of adhesion. - ANSWER-C. Contract of utmost good faith.
.Because the insurance company usually determines policy wording and the insured
has little choice but to "take it or leave it," an insurance contract is a
Select one:
